A South Korean investor has been fined for attacking the CEO of bankrupt crypto lender Delio, marking yet another instance of escalating tensions between defrauded investors and crypto executives in the country.
The new case reflects the growing frustration among investors who have suffered massive losses due to the collapse of major crypto lending platforms such as Delio and Haru Invest.
With court proceedings still ongoing, there have been cautions concerning the increasing number of victims resorting to violence as they seek accountability.
Source: Park Beom-su/Digital Asset
Investor Assaults Delio CEO Over Unanswered Inquiries
According to reports from local media, a man in his 40s, identified as Delio’s largest creditor, was fined 1.5 million won ($1,023) for breaking into the home of CEO Jeong Sang-ho and assaulting him.
The investor, referred to as Mr. A, had entrusted 87 BTC (approximately 10.9 billion won) and 190 ETH (approximately 500 million won) to Delio before the platform suspended deposits and withdrawals in 2023.
Mr. A, having received no response to his inquiries regarding the recovery of his funds, decided to confront Jeong in person.
Upon arriving at Jeong’s residence, a heated argument ensued, which escalated into a physical assault.
The matter was soon reported to the police, and following investigations, the Seoul Northern District Prosecutors’ Office imposed a summary fine for home invasion and assault on March 19.
However, the case is still open for appeal, and Mr. A has the right to request a formal trial should he dispute the ruling.
This incident follows a pattern of increasing hostilities between investors and executives of failed crypto platforms in South Korea.
In a particularly violent episode, another disgruntled investor, Mr. Kang, took more drastic action in a courtroom setting, attacking a CEO in the middle of his fraud trial.
Investor Stabbed Haru Invest CEO
In an even more severe case, Mr. Kang, a 51-year-old investor, was indicted for attempted murder after stabbing Haru Invest CEO Lee Hyung-soo in the neck multiple times during an August 2024 court hearing.
Kang, who lost 100 BTC (worth $8.3 million) when Haru collapsed, allegedly acted out of desperation and anger over his financial losses.
The Seoul Southern District Prosecutors’ Office has since demanded a 10-year prison sentence for Kang, citing the gravity of the attack.
His defense team, however, argues that the crime should be classified as aggravated assault rather than attempted murder, emphasizing that the act was committed impulsively due to extreme financial distress.
Meanwhile, CEO Lee has indicated that he is focusing on damage recovery through Haru’s bankruptcy process and has yet to confirm whether he will seek legal retribution against his attacker.
Haru Invest, like Delio, abruptly halted withdrawals in June 2023 and declared bankruptcy in November of the same year.
The platform had been promising guaranteed returns of up to 16% despite suffering financial distress as early as 2019.
Prosecutors allege that Haru’s executives orchestrated a massive fraud scheme, siphoning approximately 1.4 trillion won ($962 million) from over 16,000 investors worldwide. Kang’s sentencing is set for April 4.
Crackdown on Unregistered Exchanges and Regulatory Reforms
As investor tensions rise, South Korean authorities are also ramping up efforts to enforce stricter regulations on the cryptocurrency market to prevent further violence.
The Financial Intelligence Unit (FIU) of the Financial Services Commission has initiated investigations into foreign crypto exchanges operating in the country without proper registration.
Notable platforms such as BitMEX, KuCoin, CoinW, Bitunix, and KCEX have been identified as violating Korea’s Virtual Asset Service Provider (VASP) regulations.
Authorities are considering blocking access to these platforms in collaboration with the Korea Communications Standards Commission (KCSC).
As authorities push forward with regulatory reforms, the country’s crypto climate remains turbulent.
With ongoing legal battles, enforcement actions, and investor discontent, the future of crypto investment in South Korea remains uncertain.
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